COST POOLS ACTIVITY COSTS COST DRIVERS
Machine setup $360,000 6,000 setup hours
Materials handling 100,000 50,000 pounds of material
Electric power 40,000 80,000 kilowatt-hours
The following information pertains to the production of V203 and G179
ITEM V203 G179
Number of units produced 5,000 15,000
Direct materials cost $25,000 $33,000
Direct labor cost $14,000 $16,000
Number of setup hours 120 150
Pounds of material used 5,000 10,000
Kilowatt-hours 2,000 3,000
Determine the unit cost for each of the two products using activity-based costing.
Click here for the solution: 4-23 (Traditional activity-based costs) VG Company has identified the following cost pools and cost drivers
